Why is NIIT Learning Systems Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 5.89% of over the last 5 years
2
Flat results in Mar 26
- INTEREST(Q) At Rs 5.78 cr has Grown at 58.79%
- PBT LESS OI(Q) At Rs 61.27 cr has Fallen at -7.2% (vs previous 4Q average)
3
Below par performance in long term as well as near term
- Along with generating -23.57% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NIIT Learning for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIIT Learning
-23.6%
-0.71
33.20%
Sensex
-9.55%
-0.73
13.04%
Quality key factors
Factor
Value
Sales Growth (5y)
12.75%
EBIT Growth (5y)
5.89%
EBIT to Interest (avg)
13.77
Debt to EBITDA (avg)
0.42
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
1.35
Tax Ratio
25.20%
Dividend Payout Ratio
33.33%
Pledged Shares
0
Institutional Holding
41.22%
ROCE (avg)
57.04%
ROE (avg)
18.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
22
Price to Book Value
2.81
EV to EBIT
11.17
EV to EBITDA
8.84
EV to Capital Employed
3.89
EV to Sales
1.66
PEG Ratio
NA
Dividend Yield
1.10%
ROCE (Latest)
34.21%
ROE (Latest)
16.38%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
8What is working for the Company
NET SALES(Q)
Highest at Rs 525.22 cr
EPS(Q)
Highest at Rs 5.61
-6What is not working for the Company
INTEREST(Q)
At Rs 5.78 cr has Grown at 58.79%
PBT LESS OI(Q)
At Rs 61.27 cr has Fallen at -7.2% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for NIIT Learning
Net Sales - Quarterly
Highest at Rs 525.22 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.61
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for NIIT Learning
Interest - Quarterly
At Rs 5.78 cr has Grown at 58.79%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 61.27 cr has Fallen at -7.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 66.04 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)






